ASBAREZ ONLINE [06-21-2004]

ASBAREZ ONLINE
TOP STORIES
06/21/2004
TO ACCESS PREVIOUS ASBAREZ ONLINE EDITIONS PLEASE VISIT OUR
WEBSITE AT <;HTTP:// 1. Oskanian Holds 'Useful' Talks with Azeri Counterpart 2. Vartan Gregorian Awarded Presidential Medal of Freedom 3. Baku-bound Armenian Officers Arrive 4. KLO Threatens Armenian Officers in Baku 5. Oskanian Discusses Positive Effects of Turkish Blockade 1. Oskanian Holds 'Useful' Talks with Azeri Counterpart PRAGUE (RFE-RL)After a meeting in Prague on Monday with his Azerbaijani counterpart Elmar Mamedyarov, Vartan Oskanian noted that the talks were "useful" for the long-running international efforts to resolve the Mountainous Karabagh conflict. "The process is continuing. I cannot state at this point that we have reached any concrete agreements. However, we find the overall course positive," Oskanian commented shortly after the meeting, which included the participation of the French, Russian, and US mediators of the OSCE Minsk Group Although Oskanian did not provide any new details about the ongoing peace negotiations, he did confirm Mamedyarov, who earlier stated that the two sides have begun considering the option of combining the resolution strategies utilized by both sides of the conflict. Reports have made clear that the Azerbaijani side wants a "step-by-step" plan that would indefinitely put off an agreement on Karabagh's status, while the Armenian side remains resolute in its desire of a single "package" accord. "The course and nature of the negotiations is such that one should really opt for a synthesis of the two different positions," Oskanian said. But he added that Karabagh's statusthe bone of contentionmust somehow be addressed under any compromise arrangement. "That synthesis should not be radically different from our emphasis on Karabagh's status," he stated. Oskanian once again denied speculations of the imposition of a US-backed plan that requires the hand-over of three of the seven Armenian-controlled districts around Karabagh. "There is no concrete proposal. There are just general discussions and nothing is being imposed on any of the parties," he said, commenting on his high-level talks in Washington earlier this month. 2. Vartan Gregorian Awarded Presidential Medal of Freedom WASHINGTON, DC--(Combined Sources)--George W. Bush announced on Friday that Vartan Gregorian, president of the Carnegie Corporation of New York, will be awarded the Presidential Medal of Freedom, the United State's highest civil award. The award was established by President Truman in 1945 to recognize civilians for their service during World War II, and it was reinstated by President Kennedy in 1963 to honor distinguished service. "We are greatly pleased to see Vartan Gregorian's years of public service and tremendous contributions to the field of education recognized by President Bush with the Presidential Medal of Freedom," said ANCA Executive Director Aram Hamparian. "Armenian Americans join today with Armenians around the world in honoring Dr. Gregorian's scholarship and many achievements in world of learning, his truly tireless leadership in the civic life of the United States, and, of course, his abiding devotion to his Armenian heritage." Born in Tabriz, Iran, Gregorian received his elementary education in Iran and his secondary education in Lebanon. In 1956 he entered Stanford University, where he majored in history and the humanities, graduating with honors in 1958. He was awarded a PhD in history and humanities from Stanford in 1964. A former university professor who has taught European and Middle Eastern history at San Francisco State College, the University of California at Los Angeles, and the University of Texas at Austin, Gregorian joined the University of Pennsylvania faculty in 1972 and was appointed Tarzian Professor of History and professor of South Asian history. He was founding dean of the Faculty of Arts and Sciences at the University of Pennsylvania in 1974 and four years later became its twenty-third provost until 1981. That year, Gregorian assumed his position as president of the New York Public Library, an institution with a network of four research libraries and eighty-three circulating libraries. Prior to his current position with the Carnegie Corporation, which he assumed in June 1997, Gregorian served for nine years as the sixteenth president of Brown University following his appointment to the position in 1989. The recipient of numerous awards and honorary degrees, Gregorian was awarded the Ellis Island Medal of Honor in 1986 and the American Academy of the Institute of Arts and Letters' Gold Medal for Service to the Arts in 1989. In 1998, President William Jefferson Clinton awarded him the National Humanities Medal. Gregorian joins His Holiness Pope John Paul II, American entertainment icon Doris Day, entrepreneur Estee Lauder, famed golf champion Arnold Palmer and eight other distinguished men and women in receiving the prestigious award. Bush will honor the recipients at a White House ceremony on Wednesday, June 23. 3. Baku-bound Armenian Officers Arrive YEREVAN (Armenpress/RFE/RL)--In their second attempt to participate in a NATO conference Armenian officers Murad Isakhanian and Aram Hovhannissian arrived in Baku, on Monday to take part in a June 22 NATO conference within its Partnership for Peace (PfP) program. Armenian officers were not able to attend the first NATO planning conference in Baku last January after Azerbaijan blocked their arrival. Defense Ministry spokesman Seyran Shahsuvarian said the two army officers boarded a Baku-bound plane in Tbilisi after being formally allowed to enter the country by the Azerbaijani embassy in Georgia's capital. The Armenian mission in Tbilisi confirmed that they were issued a special "written permission" on June 11, to attend the conference. Armenia has repeatedly stated its intention to take part in the exercise and, under the PfP rules, does not need Azerbaijan's consent for doing that. "I am ready to go there even if they kill me," said Colonel Murad Isakhanian, one of the two Armenian officers attending the NATO seminar shortly before flying to Baku. "I am a military officer and must obey orders," he added. According to Shahsuvarian, responsibility for ensuring their security primarily lies with NATO. 4. KLO Threatens Armenian Officers in Baku BAKU (Baku Today)--The Karabagh Liberation Organization (KLO) lashed out at Azerbaijan's high-ranking foreign ministry officials, as well as some local human rights activists and celebrities for "falling victim to Armenian policies." KLO accused Foreign Minister Elmar Mammadyarov and his deputy Araz Azimov of "making irresponsible and illogical" statements in approving the planned visit of Armenian military officers to Baku for a June 22 preparatory conference for military exercise to be held in Azerbaijan in September under NATO's Partnership for Peace (PfP) program. Mammadyarov and Azimov apparently told the local media that since the conference is a NATO organized event, it would be unwise on the part of Azerbaijan to create obstacles for the Armenian officers. "By making irresponsible and illogical statements, Mammadyarov and Azimov have demonstrated that are ready to go for concessions on the Karabagh issue," a statement by KLO read. "They invite and express readiness to sit down at the same table with the Armenian officers who have slaughtered more than 20,000 Azerbaijanis, occupied our territories, and now continue murdering our soldiers and officers," continued the statement, vowing to take radical action to stop the entry of Armenian officers. "The Karabagh Liberation Organization believes that these people have been trapped by the Armenian Diaspora and they have become…participants of a vast plot against Azerbaijan… But we will not allow this treacherous design to be carried out," the statement added. 5. Oskanian Discusses Positive Effects of Turkish Blockade WASHINGTON, DC--Turkey's economic blockade of Armenia has had an unexpected positive effect on the economy, said Armenian Foreign Minister Vartan Oskanian, in a June 17 interview with The Washington Times. Oskanian said the Turkish embargo, imposed on Armenian since the early 1990s, has forced Armenia to diversify its economy "We are developing and developing well. We are more efficient, more effective," he told Washington Times correspondent Tom Carter in an interview at the Armenian Embassy last week. "We have strengthened our [information technology] industry. We have diversified into diamonds and jewelry: things that can go out on satellite or in small pouches on airplanes." Oskanian met with Secretary of State Colin Powell, National Security Adviser Condoleezza Rice and a host of Congressional members during his brief working visit. The foreign minister stated that Armenia was gratified for being selected as part of the Millennium Challenge Account, which will give the country access to US financial aid in the next three to five years. "There are billions of dollars available, which will be extremely valuable to our economy," noted Oskanian, predicting that his country will continue to liberalize the economy, invest in "human capital" and improve human rights and the rule of law. Oskanian said Armenia supported the US-led effort to liberate Iraq, although it did not provide troops. Armenia granted permission for coalition planes to fly over its territory and is prepared to send a specialist team to help remove land mines. The minister also said Armenia's relationship with the European Union improved this week when the union welcomed Armenia, Azerbaijan and Georgia under its "neighborhood policy," which aims to encourage ties with the European bloc. However, he added that the designation does not guarantee membership. All subscription inquiries and changes must be made through the proper carrier and not Asbarez Online. ASBAREZ ONLINE does not transmit address changes and subscription requests. (c) 2004 ASBAREZ ONLINE. All Rights Reserved. ASBAREZ provides this news service to ARMENIAN NEWS NETWORK members for academic research or personal use only and may not be reproduced in or through mass media outlets.

WWW.ASBAREZ.COM

Armenian Grids seeks $38 Mln from JBIC

Armenian Grids seeks $38 Mln from JBIC
Interfax
June 21 2004
Yerevan. (Interfax) – Armenian Grids expects to sign an agreement with
Japan Bank for International Cooperation (JBIC) later this month for
a loan worth $38 million to finance energy projects, company General
Director Yevgeny Gladunchik said Friday.
He said $30 million would be used to reconstruct low-voltage power
plants acquired during privatization and $8 million would be used to
buy and install 150,000 electric meters.
JBIC representatives will visit Yerevan June 21 – 28. Gladunchik said
the loan would be used by the end of 2006.
The Armenian government and JBIC signed a loan agreement in 1999 to
finance the reconstruction of 33 power substations. The money was
never received because Armenia began privatizing its power grids.
The loan will be used to modernize just 30 substations since prices
for energy equipment have risen substantially in the past five years,
he said.
Armenian Grids must pay $2 million on the loan each year. The loan
will be provided for 30 years at 1.8% annually. Britain’s Midland
Resources Holding Ltd bought 100% of Armenian Grids for $12.15 million
in November 2002.

Armenian govt forecasts 6%-7% GDP growth in 2005-2007

Armenian govt forecasts 6%-7% GDP growth in 2005-2007
Interfax
June 21 2004
Yerevan. (Interfax) – The Armenian government is forecasting growth
in GDP in 2005-2007 of 6%-7% per annum and average yearly inflation in
this period is planned at not more than 3%, Armenian Finance Minister
Pavel Safarian said at a press briefing.
He said that in absolute terms GDP in 2005-2007 would amount to 1.953
trillion dram, 2.133 trillion dram and 2.33 trillion dram respectively.
The deputy minister said that the government approved a mid-term
program for expenditure in 2005-2007. He said that priority would be
given to expenditure on education, healthcare and social welfare.
Armenian GDP in 2003 increased 13.9% year-on-year to 1.62 trillion
dram. The Armenian Central Bank forecasts that inflation in the
republic in 2004 will not exceed 3%. Consumer prices increased 8.6%
in 2003.
The official exchange rate on June 17 was 545.63 dram to the dollar.

BAKU: Azerbaijani, Armenian Foreign Ministers Meeting in Prague

Azerbaijani, Armenian Foreign Ministers Meeting in Prague
Baku Today, Azerbaijan
June 21 2004
Azerbaijani and Armenian foreign ministers are going to meet in
Prague, Czheck republic, on Monday to discuss ways of finding a
peaceful settlement to Nagorno-Karabakh conflict.
Elmar Mammadyarov of Azerbaijan and Vardan Oskanian of Armenia are also
expected to discuss the recent breaches of the cease fire agreement
in the contact line between the Azerbaijani and Armenian troops.
Co-chairs of the Minsk group of the Organization for Security and
Cooperation in Europe (OSCE) that has been mediating the peace
negotiations since 1992 are also to attend the meeting.
Oskanian said before the meeting that no new proposals from the Minsk
group are expected, ANS reported.
The chief diplomats of Azerbaijan and Armenia last met in Strasbourg
on May 12 and after the meeting Oskainian said no agreements were
reached between the two.

Cher on Farewell Tour in Moscow, Armenian Declares Being Her Cousin

Cher on Farewell Tour in Moscow, Armenian Declares Being Her Cousin
Moscow News
June 21 2004
American singer Cher will perform in Moscow Kremlin palace on Monday
and Tuesday. On June 24, she will have a concert in St. Petersburg,
at the New ice arena.
These concerts are part of her farewell world tour. In an interview
to the NTV television channel, she said that one should leave the
stage at the golden age.
Cher’s concerts coincided with Moscow International Film Festival.
Hollywood star Meryl Strip who had arrived to Moscow for the festival
will attend Cher’s show, Moscow government information center
reported. In 1983, Strip and Cher played in the Silkwood movie by
Mike Nichols.
Cher is of Armenian origin, she was born as Cherilyn Sarkisian.
Komsomolskaya Pravda newspaper wrote that a citizen of Yerevan, the
capital of Armenia, approached to the bus in Moscow airport where
Cher was sitting and showed her a photograph of his father who, as
he was quoted by the paper as saying, was the brother of Cher’s father.
Marvel Sarkisian quoted by the paper said that his father Vardan was
killed in the World War II and his brother Karapet who allegedly is
Cher’s father went to the United States via Bulgaria and changed his
name to John. Marvel was ready to make a genetic analysis of his blood,
the paper wrote. However, Cher did not talk to him and left after he
had shown the photo to her.

BAKU: Extended meeting of Presidents Aliyev & Stephanopoulos

Azer Tag, Azerbaijan State Info Agency
June 21 2004
EXTENDED MEETING OF AZERBAIJAN PRESIDENT ILHAM ALIYEV AND GREEK
PRESIDENT KOSTANTIONOS STEPHANOPOULOS
[June 21, 2004, 18:22:41]
After the one-on-one meeting of the twp presidents, was held an
extended meeting of the heads of states.
After the President of Azerbaijan Ilham Aliyev welcomed the guests,
he said:
“The relations between Greece and Azerbaijan successfully develop. We
would like these relations to cover all the fields. We have discussed
this question in our private meeting. We want the political dialogue
strengthened. There are many economic projects and opportunities. I
hope the economic links will accelerate.
We are delightful that together with the president a large number of
businessmen have come to Azerbaijan and they are having useful
meetings. We have also successful links in humanitarian sphere. A
Greek department is functioning in the Baku Slavonic University and
attracts many students.
As you know, we are to cooperate in energy sector fruitfully. We have
made fist steps in this field. I hope our energy cooperation will
acquire higher level. I once again welcome you and am convinced that
after this visit, our relation swills develop in all spheres”.
President of Greece Constantinos Stephanopoulos said:
” Thank you very much, Mr. President,
Taking the opportunity of presence of the media representatives, I
would like to tell we attach great importance to this visit. Also I
would revere memory of your great father with whom I have met twice
and had exchange of views connected to regionally important questions
and issues related to your country.
Today, we shall have conversation of possible ways of cooperation
between our countries. Our country is interested in the energy sector
of your country. We hope we shall take part in development of natural
gas deposits of Azerbaijan.
We would also to set up trade links with your country and on this
purpose a large number of Greek businessmen have come to Baku. I am
convinced that the 2-day economic forum that I am invited too, will
also make its contributions to this.
Mr. President, Greece is a country with ancient culture and
traditions. We would like to develop our cultural links, have close
relations among the higher educational institutions and scientists.
It is pleased that I will visit the Baku Slavonic University
tomorrow. I shall be ranked honorary doctor of the University. We
shall open a Greek Studies Center in the University”.
Touching upon the Armenia- Azerbaijan Nagorny Karabakh conflict,
President Constantinos Stephanopoulos said: “We fully understand the
problem. It is because we are facing a similar problem. Despite the
difficulties, we wish the problem found its solution. And this, of
course, depends on the sides’ sincerity and will, as well as support
of the international organizations.
Mr. President, I assure You that Greece in the frame of the European
structure, will do its best that Europe played active role in
settlement of the conflict.
Mr. President, permit me to thank You for warm hospitality and invite
You to visit our country. Of course, the diplomatic channels will
ascertain the schedule of the visit. It is a regret that probably it
will not be me who will receive you in Athens. But this does not
change anything. We have unchangeable feelings of respect for you.
During the meeting, also were discussed a number of other isues of
mutual interest.

Chess: Iranian Prodigy Qaem-Maqami Humbles Vaganian

Iranian Prodigy Qaem-Maqami Humbles Vaganian
Mehr News Agency, Iran
June 21 2004
TEHRAN, June 21 (MNA) – Iranian grand master Ehsan Qaem-Maqami gave
top Armenian player Rafael Vaganian an unforgettable lesson at the
World Chess Federation (FIDE) Championships in Tripoli, capital of
Libya, Monday.
The Iranian phenom checkmated once world No. 3, Vaganian, who stood
top in Russia’s Aeroflot event in 2004.
Maqami found himself in the top 64 players’ list as he beat the
Armenian twice.
Playing with black pieces in his first challenge Sunday, he displayed
unexpected prowess against Vaganian in a queen’s Indian defense after
offering his opponent a draw, which was declined.
“The game was normal for first 18 moves. I offered my opponent draw
but he tried to win and did some bad moves,” said the Iranian genius
after the first match.
He managed to defeat Vaganian in their second fight on June 21.
Morteza Mahjub, Maqami’s teammate, who also emerged victorious in his
first fight and overcame Georgian grand master Zurab Azmaiparashvili,
was booted out of the tournament Monday when he lost the return and
semi-rapid matches.

Montreal…News from Canadian Diocese

PRESS OFFICE
Armenian Holy Apostolic Church Canadian Diocese
Contact; Deacon Hagop Arslanian, Assistant to the Primate
615 Stuart Avenue, Outremont Quebec H2V 3H2
Tel; 514-276-9479, Fax; 514-276-9960
Email; [email protected] Website;
Naira Melkoumian Received at the Canadian Diocese
On Friday June 11, 2004, Mrs. Naira Melkoumian, Executive Director
of the “Armenia” Pan-Armenian Fund (Himnadram) visited the Montreal
headquarters of the Canadian Armenian Diocese. His Eminence Bishop
Bagrat Galstanian, Primate, warmly welcomed the distinguished guest
in the Dikran Karibian Hall.
Attending the formal reception were Very Rev. Fr. Ararat Kaltakdjian,
Vicar General, Very Rev. Fr. Hayrig Hovhannessian, Rev. Fr. Vazken
Boyadjian, Pastor of St. Gregory the Illuminator Cathedral, Dr. and
Mrs Haroutiun Arzoumanian, vice chairman of the Diocesan Council,
representatives of Montreal Armenian organizations, members of both
Montreal and Laval parish councils, Diocesan Youth Council members
and members of the Executive Committee of Montreal’s “Armenia” Fund.
Rev. Fr. Vazken Boyadjian welcomed the guests and introduced
Mrs. Melkoumian, who has been the Foreign Affairs Minister of
Mountainous Karabakh and permanent representative of Karabakh in
Armenia, before assuming the responsibility of Executive Director
of the “Armenia” Pan-Armenian Fund. Bishop Galstanian addressed
the guests and expressed his joy that this was the first time he
was welcoming a high-ranking official from Armenia. Serpazan said,
“Armenia is the homeland of all Armenians and that the strengthening of
our motherland socially, economically and politically is a sacred call
for all of us. Today, more than ever, we are called upon to preserve
our motherland, where our identity and the nation’s existence lies.”
Mrs. Naira Melkoumian thanked the Primate for the cordial reception
at the Diocesan headquarters. She then extensively talked about the
plans and the projects that the Fund is carrying out in Armenia and
in Artsakh. She asked His Eminence’s blessings and called for all
those present to support the mission of the “Armenia” Fund.
Bishop Galstanian visited Archbishop Andrew Hutchison
On Tuesday June 15, 2004 His Eminence Bishop Bagrat Galstanian visited
the Anglican Archdiocese of Montreal and personally congratulated
Archbishop Hutchison on his election as Primate of the Anglican Church
of Canada.
“Canadian Armenians are delighted as a close friend of their church
and their motherland Aremenia has been elected Primate of the Anglican
Church,” said Bishop Galstanian, and added, “We certainly look forward
for further cooperation and exchange of views between our respective
churches on many social issues”.
Archbishop Hutchsion briefly presented his plans for the coming
months and expressed his wish to officially visit the Mother See of
Holy Etchmiadzin, the Spiritual Centre of Armenian Christianity. His
Eminence Bishop Bagrat Galstanian promised to convey Archbishop
Hutchison’s wish to His Holiness Karekin II in order to arrange an
official visit.
The Vicar General of Anglican Archdiocese Rev. Peter Hannen invited
Bishop Bagrat Galstanian to attend a farewell reception in honor of
Abp Hucthison where government officials as well as eminent spiritual
leaders will be present. Accompanying the Primate was Deacon Hagop
Arslanian.
Pontifical and Diocesan Awards Bestowment
On Saturday June 12, Bishop Bagrat Galstanmian, Primate of the Armenian
Church Diocese of Canada, bestowed the Pontifical Medal of St Nersess
Shenorhali and the Holy Encyclical (Gontag) by His Holiness Karekin
II, Catholicos of All Armenians, to Mr. Kevork Manoukian, Chairman
of Montreal’s “Hayastan” Pan-Armenian Fund. Siultaneously, the
“Etchmiadzin” Diocesan First Order Medal was bestowed upon Mrs. Nayira
Melkoumian by His Eminence Bishop Bagrat Galstanian.
The occasion was the formal banquet held at the AGBU Alex Manougian
Center’s Jirair and Eliz Dervishian Hall, in honor of Mrs. Nayira
Melkoumian, Executive Director of “Hayastan” Pan-Armenia Fund
headquartered in Yerevan, Armenia. Mrs. Melkoumian talked about the
Fund’s projects in Armenia and Artsakh and thanked the Montreal and
Toronto committees as well as the Canadian Armenian community for
their support of the Fund’s reconstruction projects. Bishop Galstanian
praised Mr.George Manoukian’s leadership and services to the Canadian
Armenian community, then asked Rev. Fr Vazgen Boyajyan to read His
Holiness’ Encyclical, and then pinned the Pontifical Medal to the
recipients’s chest. The Primate tgen emphasized the importance
of supporting the “Hayastan” Pan_Armenia Fund, and bestowed the
“Etchmiadzin” Diocesan First Order Medal to Mrs. Nayira Melkoumian
in appreciation of her tireless efforts to serve Armenian and Artsakh.
Attending the banquet were representatives of community churches
organizations. The Diocesan Council was represented by Dr Haroutiun
Arzoumanian, Vice Cahirman.
Divan of the Diocese

www.armenianchurch.ca

Armenian diaspora head pledges assistance to Karabakh

Armenian diaspora head pledges assistance to Karabakh
Mediamax news agency
21 Jun 04
Yerevan, 21 June: The Armenian Assembly of America (AAA) is ready to
defend Nagornyy Karabakh’s interests on the international scene in
every possible way.
The chairman of the AAA board of directors, Anthony Barsamyan, said
this at a meeting with the NKR Nagornyy Karabakh Republic foreign
minister, Ashot Gulyan, on 19 June, Mediamax’s correspondent reports
from Stepanakert Xankandi .
Anthony Barsamyan said that during his visit to the NKR, he is going
to study the opportunities of the AAA’s assistance to Nagornyy Karabakh
in the implementation of humanitarian programs.
Ashot Gulyan familiarized the guest with the current state of the
Nagornyy Karabakh settlement and the situation in the region. The
minister noted that although the conflict has not been settled,
Nagornyy Karabakh should develop in all directions.
In this regard, Ashot Gulyan expressed the hope that the AAA will
render assistance to the processes of democratization and state
building in the NKR, the development of the republic’s public sector,
and the involvement of Karabakh’s NGOs in the realization of regional
projects.

Russia’s Putin Praises Tashkent Summit

RUSSIA’S PUTIN PRAISES TASHKENT SUMMIT
Channel One TV, Moscow
21 Jun 04
(Presenter) Russia should develop immunity, so that negative
events occurring on the international market do not affect Russia’s
interests. This was discussed today (21 June) at a meeting between
President Vladimir Putin and government members. Putin also summed up
the results of the recent summits. Lyudmila Moiseyenko has the details.
(Correspondent) Today’s meeting with the cabinet of ministers in
the Kremlin summed up the results of the recent summits – the G8,
Shanghai Cooperation Organization (Russia, China, Kazakhstan,
Tajikistan, Kyrgyzstan and Uzbekistan), the Eurasian Economic
Community (Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan)
and the Collective Security Treaty Organization (Armenia, Belarus,
Kazakhstan, Kyrgyzstan, Tajikistan and Russia). Vladimir Putin thanked
everybody who participated in preparations for the events. All goals
Russia set were achieved.
(Putin) We have significantly moved forward in strengthening
partnership links in all these areas. I’d like to specifically
emphasize our work with Uzbekistan, where we agreed with its
leadership to sign a very important document – the treaty on strategic
partnership. This is changing the quality of Russia’s relations with
the Republic of Uzbekistan in general.
(Passage omitted: Long-term multiple visas to France and Italy
available for Russian businessmen.)
(Correspondent) Another major point at the meeting was the movement of
capital into and out of Russia. The law on currency market regulation,
which has come into force, should simplify the procedures. The
finance minister (Aleksey Kudrin) gave a report on this to the
president. Russia is joining the world currency system and this is
a serious step towards a convertible rouble. However, since the law
came into force, the country can sometimes find itself dependent on
events on the world market.
(Kudrin) Last Friday (18 June) the Central Bank introduced a whole
series of instructions that ensure that such opportunities can be
used. However, specific measures will depend on the state of the
market, the grounds for and necessity of preventive measures on
the market against the movement of speculative capital, which can
quickly disrupt the payment balance and influence the currency rate
and inflation in our country.
(Putin) How long could these restrictive measures be in place?
(Kudrin) The measures could be in place for two years only. In two
years, after a transition period, these measures will be cancelled
by law, and it will not be possible to introduce them again.
(Correspondent) Prime Minister Mikhail Fradkov was absent from the
meeting in the Kremlin today. He had good reason. He is currently
in Tallinn at a meeting of the heads of government of the members of
the Council of the Baltic Sea States.